Mitchell Services wins contract with Kalgoorlie Consolidated Gold Mines

Company News

by Anna Napoli

Drilling services provider Mitchell Services (ASX:MSV) has announced a five-year contract with Kalgoorlie Consolidated Gold Mines.

Under the contract Mitchell will provide underground diamond drilling services at the company's Mt Charlotte Underground Mine, which is adjacent to Kalgoorlie-Boulder in Western Australia.

While the Company expects a material long term revenue and earnings benefit as a result of the contract it's not likely to have a material impact on FY19 revenue and earning EBITDA guidance numbers of $110m-$120m and $21m-$23m respectively.

Mitchell Services says the deal strategically provides it with a multi-rig multi-year contract in Western Australia which will aid further growth over time.

Shares in Mitchell Services (ASX:MSV) last traded at 6 cents.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.